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tv   Countdown to the Closing Bell  FOX Business  September 6, 2012 3:00pm-4:00pm EDT

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note liz: i am liz claman and this is count down to the closing bell. we are in the middle of a major rally here. the dow could close at rebels not seen in nearly five years. here's the number to beat, 13,279. here we are ten points from the last hour of trading and closing above that number would be the highest close since december of 2007. here is why stocks are rallying. more juice, more fuel from the european central bank bought more substance. european central bank, mario draghi said definitively we will implement the new bond buying program to bring down borrowing costs and stabilize worries of some countries like spain and italy. back home in the u.s. weekly jobless claims came out better
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than expected. this is the number you want to see come down at of the jobs report. 10% of stocks in the s&p 500 hitting 52 week highs. three of them, google, craft and disney. the nasdaq 100 hitting a 12 month intraday high. peak levels not seen since the internet boom in 1999-2000. the big winner in the index and breaking news over the past 15 minutes is coming out with the kindle and the kindle fire. eight week battery life. will last eight weeks. amazon hitting an all-time high. it is not just stocks. if you don't own equities and you have been in gold and silver they are getting major bumps. gold at its highest level since march and silver at its highest level since april. president obama prepares to take the stage at the democratic
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national convention, we are taking you to the democratic national convention to speak with former wall street banker who has stood by the president. there are not a lot of bankers who like the president. tough on regulations with wall street but we have a fox business exclusive with chairman robert wolfe on what president obama needs and has to say tonight to convince voters he is pro-business. the bond buying bombshell from the european central-bank is very much the underlying support system for the rally. in the u.s. that is what we see. let's take it to ashley webster in frankfurt, germany where the ec made the big announcement. what about where you are? ashley: absolutely huge. mario draghi team through with
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what the markets wanted. unlimited bond buying program where they will buy one to three your note. all the countries have to do is officially request help through the bailout funds. it does come with an attachment of strict conventions that will be monitored by the imf. they're prepared to do that. to countries like spain and italy want someone coming in to the balance books is the big question. so far spain and italy said we won't apply for help. interesting to see what happens next. the ball is squarely in their court. his credibility on the line making the big announcement today and markets in europe reacting favorably as we have seen in the united states. the ftse up 12% and the cac index of 12% and bank stocks, french bank stocks up 7%.
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certainly a lot of positive reaction to this news but there are critics who say that the pcb is just throwing money at the problem. this is tantamount to finding governments by printing bank notes. there you go. strongly opposes this move. there are those who say it helps bring confidence back and brings down borrowing costs. bottom line is what does it do to address the euro zone debt crisis itself. this does not address it. it is down to individual governments to get their fiscal house in order. it could be a long time before that can be accomplished. >> the dow is up 220 points and the s&p up 26. it has been a real rally.
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let's take it to the traders at the stock exchange. john core team of legal very broad based rally. if you had to pick one is it a good private sector job numbers? let's not ignore that. we had job gains of 280,000. >> you are right. the economic data out of washington clearly is something the market needed and wanted and helping the market moved higher. actions speak louder than words. we heard this in the past and her that my coming out. let's see how it will be implemented when it moves forward. list, are -- terminology of europe. let's see if this accomplishes what they want to accomplish but let's not forget the good data that came out of here. unemployment tomorrow. i don't expect a big move because we are getting everything price in. i want to see more volume in
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this market. low-volume and high volatility. these big one way swings are not healthy for the market. i would have preferred 100, that means we might pullback in the short term. cheryl: we have a lot of people with pensions so we are doing that. i am looking at the dow jones industrials. all 30 stocks moving to the upside and that is one of those sort of indicators. the s&p 500, 50% hitting all-time highs. let's go to the cme. do you agree that actions speak louder than words? does look like action out of the european central bank? >> phenomenal what they did. they did something you live with that you understand. there are certain strings attached. countries that get the money don't get the money.
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countries that get the benefit of lower interest rates have to make their austerity work. this does not mean spain and italy have to come to the pcb and ask for help. the threat might keep interest rates down enough -- the market likes it. gold is up. we have three more things to get through. jobs data, open federal market committee meeting and how does the german court will on everything? very important. >> some important issues. the fed rearing its head. that may be absolutely major and as we look at a positive day on the market crude has reverse that is moving slightly lower at had been lower. at and energy be rallying along with this party if people believe companies might do
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better? >> it should. most of this year it has done that. as the stock market rallies crude-oil -- what is happening right now is we come to the end of the system, big usage of oil and natural gas so the driving season coming to an end. the cooling season, air-conditioner is, electricity and natural gas coming to an end. we saw those market sell-off and will week and we are seeing lower levels from here. cheryl: i am one of those people like mr. fries. i need freezing. thank you for joining us on the floor show and dow jones industrials charging ahead by 217 points. all major indices are green. we have the volatility index coming out of this market at the moment. let's get to an individual name which is the financial morgan stanley. their problems go beyond technology in the brokerage unit. the firm has seen a drastic decline in profitability.
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particularly fixed-income department and is eyeing a dramatic response to that. got to do something. charlie gasparino is hearing about this. >> one of the second responses, will change the business dramatically. what they are eyeing is a complete restructuring of the business. not totally getting out. rumors about them leaving the fixed-income business. they say they are 100% committed to it. it is the size they're not committed to an sources inside morgan stanley, people who spoke with morgan stanley directly say the fox business network people inside morgan stanley are bracing for a dramatic downsizing of that business. they are studying it which is why they're bracing. they haven't announced internally and you will hear it first. it is all about the economics. too capital intensive and not very profitable if you look at second quarter earnings fixed-income did not do well and they are thinking of an off an
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exit but maybe exiting certain parts of it and spinning off if they can but clearly are radical downsize. we are talking layoffs in the fixed-income department which is what people inside morgan stanley -- cheryl: of people rushing to corporate bonds and fixed-income in general? charlie: yes but underwriting those has become a commodity. what happened in the 1990s is these exotic bonds. you underwrite them and hold them on your balance sheet until you sell them. because of dodd-frank and all the capital rules it is more difficult to hold those in inventories and in the past and the main culprit of the financial crisis was the underwriting of mortgage-backed securities and exotic types of mortgage-backed securities. [talking over each other] charlie: collateral debt obligations and you underwrite them and you hold them on your
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books until buyers buy them. guess what happened to. a capt. deriding them until 2006 and nearly 2,007 not seeing a the mortgage crisis developed the way it did and hedge funds went under and mortgage crisis hit like you never saw before. all those terms were stuck with massive amounts of inventory on the balance sheet and when they got marked down guess what you had? 2008 financial crisis. what we are talking here is a firm that right now because of dodd-frank you can't do that anymore that is part of this no matter how treacherous it is. bracing for layoffs. they haven't decided yet. they are studying a massive restructuring. at least that is what they tell clients and people tell me. my guess is there will be big layoffs in fixed-income. cheryl: liz: morgan stanley possibly laying off. it is hire. charlie: because of what is going on in europe. that would be a net positive by
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the stock you are investing. liz: thank you very much. we have got to get to the amazon story. breaking news. the first look at new pictures of amazon's kindle fire. let's go to adam shapiro who is inside the announcement area in santa monica, what is going on? >> talk about putting a v-6 team in a volkswagen bug the. this $499.32 gigabyte memory and you get that fur $499 and this is direct competition to the ipad with comparable features would run close to $759 saying amazon is in the business not of selling you a product but want to tell you something to use to so -- kelly the content you use on that device. there is the kindle fire hd
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which comes in $299. the kindle fire hd and smaller screen comes senate $199 and then the ecb readers which wants all of this in 2007. the kindle illegally introduced the kindle paperweight at $119 and the baseline, you also have the kindle paper like is their name for the display which is easier to read. a true white paper. you can see it in some light. $179 with 3d access. that is what the big announcement was. dropping on the base models and margins are not made on selling you a device but on content and that was making headlines. liz: we love the kindle fire and double up with the ipad. love this story. this is what jeff said.
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in anticipation of what adam said, we want to make money, not simply to buy our devices. that has a longer tail. you keep getting more money because of the initial purchase price. closing bell ringing in 47 minutes. got to stay with us. to robert wolfe left his role as chairman of ubs america and started his own firm. he has been one of president obama's advisers and still is and is one of the few bankers who has been a cheerleader for the president. he is in charlotte for the democratic national convention. we will ask why he thinks democrats are wall street's best bet in the white house. want to try to crack it? yeah, that's the way to do it!
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nicole: gas companies hitting new highs. exxon mobile in the dow component. that is a great performer up 1% but a 52 week high, it is certainly an $1.82. obviously a big run up as they took office. then you are lucky about another great performer. liz: president bill clinton rallied his party at the democratic national convention as democrats await president obama's speech. let's go to charlotte to speak to one of the greatest allies when it comes to wall street. there are few and far between, first on fox interview, robert wolfe of ubs america and president obama's council on jobs and competitiveness. thank you for joining us. you have been there for 48 hours. what is the most interesting and
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important thing you have heard from delegates or people you run into? >> the excitement has been imagination. feels like a super bowl. people like hearing the story of the president's vision and the direction with respect to the economy. we heard president clinton talk about where we year and where we are. the president--the first lady talked about important women issues. we sat in the box with lily ledbetter who was equal pay for women. you get a diverse array of important issues to the forefront. liz: the biggest issue may have more clarification tomorrow. the president accepts the nomination tonight when we get the august jobs report. the question becomes the gdp numbers look good for private
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job creation. it has been slow going. with the bad number stop the democrat's message on a recovering economy and our advisor is preparing for that possibility? >> you can't take one number and say that is the direction. there were a million jobs in the private sector. and a revision of 85,000. based on the weather, you have more up or down going on. up 125. you have to look at where we are. 29 straight months of the job gains. that is four million private-sector jobs we have created. you have manufacturing up 500,000 jobs. the best since 1990. you have to look at the trajectory we are on and feel good we are on a good path.
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we are not where we want to begin but we are going there. liz: the president is perceived and this is not a surprise to you and you hear it over and over again particularly from the republican side that he is anti business. do you think he could or will face something to make it a different perception that he isn't anti business? >> last night you had costco give an incredible speech on how he has focused. you have a myriad of senior business people around this country that support this president whether it is eric schmidt for google. someone telling you why the obama administration is going forward and someone else may tell you why the mitt romney administration is pro-business. i don't think it is one direction as the media makes it seem. liz: one thing that does appear
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to be heavily weighted against the president is folks from your arena, needless to say getting so many bank donations that the first time he ran and now not so much. you said he is the better president than mitt romney for wall street. that seems like a stretch to some people. convince me. >> i believe we need rate reform. i was there the lehman weekend. let's look at the facts. they were 100% since he took office. you cannot change that. they were up around 50%. fifteen% year to date. we are on the right trajectory. business has a lot of cash on hand. we are seeing better productivity and the average hour work week go up. this will not be a referendum on whether wall street is for him or against him.
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it will be a referendum on our be in the right direction and is his vision the right one and a choice. i believe this president has the right vision. liz: some are not so sure they care which president is helpful to wall street. >> there are a lot of wall street guys down here. obviously i saw tony james from blackstone and others. maybe they are yelling a little louder than we are. liz: charlie gasparino said he wasn't going to the dnc because he didn't get enough contact from wall street guys but i will tell him about tony. good to see you. >> tell charlie i said hello. liz: i will. he is upstairs watching. former chairman at ubs america and founder of the new consulting company 32 advisers. closing bell ringing 36 minutes away. we are holding on to great gains. do you order hard copies of photos anymore?
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i do, but my next guest is making a big bet that you will do this. his stock is getting a strong boost. the ceo of shutter fly, photo book, mouse pad company all that and more coming up on a day when the stock is jumping. bla we have big dreams.
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>> the rally continues. here is the dow. of the 213 points all moving higher by 200 points on dow jones industrial average. getting the best bump as far as percentages. at a job like that is extraordinarily significant for about 25 points as of the 500.
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the russell also participates. we had that adp member looking strong with the bureau of labor and we did get news out of europe rejected them ahead of the ecb said we will buy bonds of struggling companies to help support the floundering situation in europe. printed photos. are they a fading pastime? as technology continues to improve how improve how does a company like shutterfly plan to keep the printed photo why? we have the ceo jeff housenbold. that is an interesting question.
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your on-line brochure and site. he is living proof. how many do you store? >> about 40,000 personal photos. liz: anybody can store their? >> it is free. we don't compress we never delete and we don't charge. if your hard drive crashes your memories are safe. liz: that is what i worry about. i want to make sure i don't lose them. it is free. your customers average three purchases per year? >> yes. we have wetting paper and tiny prince and shutterfly now we are addressing the greeting card industry.
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it would look at their graduation market, misread 16, birthday and thank you notes. customers to about $95 per year and we will do $600 million of revenue. your stock is doing beautifully year today. year over year down 46%. what has been so positive since january? >> wall street understands we profitably monetize photos. we have more than 15 billion precious memories making them into photo books, calendars, . liz: these are his three sons. you can customize your iphone cover.
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little rock stars. i love this. >> $34.99. if you are in the doghouse make something like that. [laughter] >> snapfish is a slight competitor. you use their paper and began printing abilities. it seems like a great synergies. >> they have spent a great partner we generate a lot of profit and growth. we got ya holt -- yahoo! focused immerse, american greetings, kodak, given the focus on making the customer images into life and generational products people start to focus on their core business.
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liz: i love the mess. $34. send it to shutterfly -- shutterfly. >> it will come to you in a couple of days the stock is moving higher even those jefferies initiated up $2.39. good to see you. ceo and president of shutterfly, jeff housenbold. my next guest says you better buy european stocks while they are shut shut -- chief. managing $6 billion for bryn mawr will tell you but he also has a fund you may want to get in on. stay tuned.
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>> i am robert gray. the tone and wall street continues with the ecb easing concerns over the debt crisis. ecb chief draghi is launching a bond buying program to help support italy and greece. jpmorgan chase named senior mortgage executive delaney as the chief investment
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officer replacing the former position that was with the position 19 years. kb homes sales are surging after credit ratings upgrade say the housing sector faces moderately better prospects for the rest of the year and the next year. we now continue when countdown to the closing bell. liz: shares of the commercial manufacturer are up. after reported better than expecting earnings there were down 94% from the same quarter last year they did attribute the decline to fewer military sales and
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less sales cutting down another 200 jobs here is a one-year picture. this company is down 40% over the past year. look at the "fox 50". also look at ups move being lower. to look at some technology companies. >> what is going on here? major averages, look at amazon, the all-time high with a new amazon can build giving you the play-by-play. what about google?
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back in 2007 and also e-bay of big winner back at the 2004 levels. where you have major averages hitting the highs. some say we have broke some thresholds it also marked newton said there is more upside potential. between three and 5%. liz: it was slightly below then suddenly shot up as it unveiled the brand-new amazon kendall park of the ecb gets credit for unfeeling the most ambitious plan yet to halt the financial crisis. my next guest has sound
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investment in india's to rise up from the rubble. from the bit -- primark trust company, ernie cecilia is it too late to get an? is the voice of mario draghi turn this around? >> thank you for having me on. looking at global concerns, will look at this stage check the with portfolios. we look at long-term trends recognizing short-term volatility but for at the products and services that has sustainability with short-term events that have occurred.
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liz: it is not too late to get into europe now that there is more stability? >> we look had global concerns that don't necessarily so their products but have strong franchises and is a larger percentage of sales go to the growing and emerging markets. looking at population growth in the emerging markets that pushed up. also income levels have been growing. that demand for multinationals that will not mess -- miss out and sell their goods. liz: your ideas, is unilever you articulated exactly why.
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while european-based does more business elsewhere. but you also like lazard international strategic find. looking at the names, glaxosmithkline, unil ever, the potash which is canadian. >> correct. great diversification. look at the top 25 holding unilever is number 14 so products and services are sold outside of europe. 55% of sales from the first half of this year went to the emerging market countries. that is attractive. they had a strong day to day. i was told the highest level
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since early 2008. but it has a yield of 3.3% and 17 -- 7% earnings growth. even after the move. to manage the client portfolios to take a long-term approach with individual stocks but also individual funds like lazard that is will vetted that is researched very well. five-star morningstar rated fund. we think it is a great long-term performer. liz: that is attractive to our audience. thank you ernie cecilia chief investment officer of bryn mawr trust company more than $6 billion of assets in
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management. the closing bell rings and 14 minutes. breaking down the stocks hitting brand new highs. time for profit-taking? questions. when you're caring for a loved one with alzheimer's, not a day goes by that you don't have them. questions about treatment where to go for extra help, how to live better with the disease. so many questions, where do you start? the answers start here.
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>> 237 points to the upside
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244 was the high with the dow jones industrial average the ecb president draghi has a bond line program plus better than expected jobs numbers and also first-time job numbers. nearly 10% of the index hitting new highs. six stocks hitting new highs. look at shares of disney. hitting another all-time high you want some of these. kraft, procter & gamble, exxonmobil. with pbx and fedex up 85 points. bereday a laggard.
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was of more than 100 points but but commodities are getting a boost sandra smith is the first and last on commodities. thorough them up on the screen you are up $2 on -- at one point now down on the session. people are saying it is a technical sell-off. people lars asking where they selling off? saying we've reached a crucial resistance. and it is a hot commodity grain prices are the best performing commodity during
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the month of august that crude oil has turned negative. but gold, precious metals as well today. liz: day q4 pointing that out at the break. $2.98. look at the macy composite there is some conviction maybe just slightly above if you had followed me on twitter you see the "first on fox" interview be sure to follow the show on the
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as we get ready for what has been up pretty great they ending with the closing bell let's go to david asman for "after the bell". >> have a candle fire? we have taken will fire at home and use a lot. with this new version $500 and claim it has as many bells and whistles as the ipad does at $200 less. it is sending stock of but let's go to nicole petallides on the stock exchange because the ancillary stuff, talking about semiconductor getting a boost because of the touch screen technology and texas instruments. >> that is how it works. everything is intertwined in this tech world. amazon might be tapped as one of the suppliers to use texas instruments. very nice using touch control how they make the touch control. liz: so broad this rally. imagine the casino na


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